Trading volume on non-fungible token (NFT) marketplaces have fallen from $16.6 billion in January to over $1 billion in June of this year.
As The Block’s data shows, this is a decrease of 94%, demonstrating just how striking the crypto bear market affects NFT sales.
It should be noted that much of NFT trading volume at the beginning of the year was likely due to wash trading on the NFT marketplace LooksRare. Wash trading is when users trade tokens among themselves to fraudulently drive up prices.
NFTs were thought to be insulated from crypto market conditions six months ago. Some tokens, such as the popular Bored Ape Yacht Club, afford users access to exclusive communities and events that maintain value even when the market is down.
But as The Block previously reported, NFT floor prices have declined in recent months — with top projects such as BAYC, Doodles and Cool Cats have fallen around 30%.